Nature of Bussiness Flashcards
Name an Australian business that has successfully expanded globally.
Westfield, a shopping mall operator, expanded into Europe and the United States.
What are some challenges Australian businesses face during global expansion?
Cultural differences, legal barriers, and managing international supply chains.
What external factors contributed to the growth of the quaternary industry in Australia?
Advances in technology, and the increased reliance on information services
How have external influences contributed to the growth of the tertiary industry in Australia?
Changes in technology and increased consumer demand for services such as healthcare, finance, and education has driven growth
Why has the quinary industry grown in Australia?
Social changes, such as an aging population and increased demand for services traditionally done at home, like childcare and hospitality.
What problems do stakeholders face when companies go into liquidation?
Employees lose jobs, creditors may not recover debts, and shareholders may lose their investment
What are the stages of the business life cycle?
Establishment, growth, maturity, and post maturity
How does a business respond to challenges during the growth stage
Expanding operations, improving financial management, and increasing market share. (i.e conglomerate, vertical, and horizontal integration)
What are some strategies businesses might use during the maturity stage?
Restructuring/reorganising, product diversification, and maintaining customer loyalty through marketing.
What distinguishes a sole trader from other business strucutres
A sole trader is owned and operated by one individual who has unlimited liability
How does a partnership differ from a sole trader
A partnership is owned by 2-20 people, sharing responsibilities and workload.
What is the key advantage of a private company?
Limited liability for shareholders, and the ability to attract capital through private invesments.
What is a government enterprise?
A business owned and operated by the government, such as Australia Post
What are external influences that affect businesses?
Economic, financial, geographic, social, legal, political, technological, and competitive factors
How do internal influenes impact a business
Internal factors like management, product, business culture, and location will shape the success of a business.
What is a stakeholder in a business
An individual or group affected by or interested in the activities of a business, including employees, customers, and shareholders
What are primary indsutries
Invovled in the extracting of natrual resources
What factors influence the choice of legal structure for a business?
Size, owernship, and finance
What is the main goal during the establishment stage of a business?
To create a solid foundation and establish a customer base
What strategies are appropriate during the growth stage of a business?
Expanding operations, introducing new products, and improving financial management
How do businesses handle change in the post-maturity stage?
By renewing business operations through innovation, or maintaining operations if the business remains steady.
What is voluntary cessation in business?
A business owner voluntarily decides to cease operations, due to reterming or sale
What is involuntary cessation?
When a business is forced to cease operations due to financial insolvency or liquidation
What is liquidatoin?
The selling off a company’s assets to pay back creditors with its unable to meet its financial obligations
